Russia's central bank has raised its key interest rate by 200 basis points to 18%, marking the highest borrowing cost in over two years, in response to soaring inflation and an overheated economy. The Bank of Russia revised its 2024 inflation forecast to 6.5-7.0%, while aiming for a long-term target of 4% by 2025. This rate hike, the sixth in just over a year, was anticipated by market analysts, although some within the Russian elite preferred a more dovish policy. Inflation currently stands at 9.18%, down from 11.9% in 2022, but still significantly above the bank's target. Governor Elvira Nabiullina is scheduled to address the media shortly, as the next rate decision is due on September 13. The bank has raised rates by 850 basis points since the latter half of 2023, including an emergency hike in August due to the falling ruble.